Securities & Exch.Board Of India vs M/S Informetics Valuation & Rating ...

The Supreme Court upheld the Securities Appellate Tribunal's decision to remand the application of M/s Informetics Valuation and Rating Pvt. Ltd. for registration as a Credit Rating Agency (CRA) back to SEBI, ruling that the requirement for the respondent to produce Audited Annual Accounts of its promoters for the two years ending December 2010 was not necessary. The Court emphasized that under Section 11 of the SEBI Act and the CRA Regulations, 1999, SEBI has the authority to regulate CRAs and set eligibility criteria, but must also ensure that procedural fairness is maintained in the registration process. The outcome favored the respondent, allowing them to proceed without the contested documentation.